Quarterly International Equity Strategy Q3 2023
After a very strong first half of 2023, non-U.S. stocks faced a more challenging environment in the 3rd quarter. Developed market central banks regained a measure of credibility in their battle against inflation and appear to be near the end of their respective rate hike cycles (Japan is an exception here). Unfortunately, longer-term yields rose around the world, putting pressure on equity valuations. Adding to the challenge for U.S.-based investors, dollar strength weighed on overall returns as well. Still, earnings growth overseas has outstripped that in the U.S. in 2023 and valuations in the largest foreign markets are very cheap historically. Sentiment towards international stocks has improved dramatically, most notably for Japanese shares. We continue to be cautious with emerging market exposures, especially with respect to China, where the political and economic climate have weighed heavily on equities. With the normalization of central bank activity, the overvalued dollar could revert, providing a strong backdrop non-U.S. stock performance.
Country Indices Flash Report – September 2023
Oil prices surged to $95 per barrel due to ongoing supply cuts from OPEC+, dwindling strategic reserves, and surprising Chinese demand.
Bailard's Tess Gruenstein Honored with Prestigious Industry Award
San Francisco — September 14, 2023 —Bailard, a values-driven asset and wealth management firm, is delighted to announce that Tess Gruenstein (Senior Vice President, Acquisitions & Portfolio Management, Real Estate) has been honored as one of Pensions & Investments’ Influential Women in Institutional Investing.
The inaugural 2023 class of P&I’s Influential Women in Institutional Investing recognized 65 industry leaders. P&I assembled an advisory board of leading investors and key industry executives to determine focus areas—including leadership and contributions to the advancement of women—and evaluate candidates on their ability to demonstrate measurable effects and results within one’s own workplace and within the industry.
Having joined Bailard in 2015, Tess is a highly skilled and effective leader who has made significant contributions to the success of Bailard’s real estate efforts, and the company at large. As a testament to Tess’s exceptional achievements, Preston Sargent, Executive Vice President of Bailard Real Estate noted, “Tess has a very special blend of skills and qualities that make her an extraordinary leader, manager, partner, co-worker, and friend. She has an unyielding commitment to fairness, quality, and doing the right thing.”
With her early experiences and support from professionals in the institutional real estate industry, Tess has dedicated herself to providing similar opportunities for others. As a woman in commercial real estate, Tess works to serve as a spokesperson, role model, and advocate, consistently promoting her team’s work. Tess seeks to drive positive change and create a more equitable and inclusive workplace culture for women in real estate.
“It is a mixture of very good luck, great colleagues and mentors, and hard work that gave me the kind of exposure and career growth to get here,” said Gruenstein. “The recognition that diversity of perspective, gender, and economic and educational backgrounds leads to more dynamic, forward-thinking workplaces is still new and so essential. I benefited from this perspective at multiple points in my career, and I cannot stress enough how it made all the difference for me. I will proudly pay this forward as we support the next wave of women in the business.”
Bailard extends its heartfelt congratulations to Tess Gruenstein for this well-deserved recognition. Her contributions have driven much success, and we look forward to her continued leadership.
About Bailard, Inc.
Founded in 1969, Bailard is an independent asset and wealth management firm serving individuals, families, and institutions alike. Bailard has built a long‐term asset management track record across domestic and international equities, fixed income, and private real estate, as well as robust, in-house sustainable, responsible and impact investing expertise. Through it all, Bailard works with clients to align their financial goals with their values. With $5.5 billion in assets under management as of 6/30/2023, Bailard is a majority employee-owned and women-led firm, and a Principles of Responsible Investing (PRI) signatory. A values-driven firm based in the San Francisco Bay Area, Bailard is deeply committed to its core values of accountability, compassion, courage, excellence, fairness, and independence.
About P&I’s Influential Women in Institutional Investing
Pensions & Investments, owned by Crain Communications Inc., is the 50-year-old global news source of money management. It released this inaugural list of Influential Women in Institutional Investing in September 2023, with 65 honorees. To be eligible, women must be currently employed in institutional investing, have a minimum of 7 years of experience in the industry and demonstrate a measurable effect and results within one’s own workplace and within the industry. Women across the institutional investment industry are eligible (allocators, asset managers, consultants, service providers, etc.) and should ideally demonstrate a commitment to attract, retain, support and promote women into the industry. This award does not evaluate the quality of services provided to clients and is not indicative of Bailard’s future performance. There was no cost for Bailard to enter.
South Logistics Center
South Logistics Center is a recently-built, Class A, industrial property totaling 328,607 square feet situated on 18.1 acres of land located at 2215 South 7200 W in West Valley City, Utah.
Country Indices Flash Report – July 2023
All emerging market regions enjoyed a month of results in excess of EAFE’s. While a Fed rate hike cycle typically causes economic distress across emerging economies, EMs look relatively unscathed as the FOMC nears the end of sixteen months that brought the Fed Funds rate from near-zero to 5.5%.
Quarterly International Equity Strategy Q2 2023
Non-U.S. stocks traversed an unusual landscape during the year’s second quarter. Wages continue to drive inflation globally, although the pressure is lessening in the U.S. relative to Europe. Policymakers everywhere need to remain vigilant as inflation is notoriously challenging to defeat. China’s underwhelming economic reopening may help dampen global inflation but also diminish the nation’s imports and exports in the near term. More broadly, emerging markets have weathered the developed world’s rate hike cycle better than history would suggest, potentially leading investors back to this long-ignored sector. Japan remains high in our Strategy’s model rankings, as higher-than-historical inflation may provide a backdrop for stronger spending. Local conditions broadly, combined with an overvalued dollar, provide long-term support for non-U.S. equities.